Funds within 529 accounts can be transferred to 529 ABLE accounts for people who become blind or disabled before age 26. 529 ABLE accounts are available to those who become blind or disabled before age 26. Importantly, having assets in a 529 ABLE account does not limit the person’s access to key government benefits such … Continued
The tax law changes the time frame for loan repayments from a 401(k). 401(k)’s were largely left alone in this new tax bill, which is a positive outcome for employees who contribute to their company 401(k) plans. The 2018 maximum contribution to a 401(k) plan remains at $18,500, plus a catch up of an additional … Continued
Owners of pass-through businesses get a break – but it’s complicated. Beginning in 2018, a new 20% deduction for qualified business income will be available. This will effectively lower the top tax rate of small business owners from the highest new personal income tax rate of 37% to about 30%. This was a partial concession … Continued
The new tax law puts a cap on the amount of debt interest cost most companies can deduct. Interest payments have long been deductible for companies, but the new tax law now limits such deductibility to 30% of the company’s EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization). This will effectively reduce the incentive for … Continued
The tax law allows companies to immediately write off 100% of equipment purchases. One of the most impactful provisions of the new tax law for mid to large size businesses is that equipment purchases can be deducted immediately, and for the full amount of the purchase, in the first year of its use. In other … Continued
The new tax law has brought about significant financial changes and opportunities for individuals and families, not least of which is the substantial increase in the estate and gift tax Lifetime Exemption amount. This amount has essentially doubled overnight, to a newly available $11.2 million per person in 2018 ($22.4 million for married couples). As … Continued
It is estimated that the newly passed tax law could result in a reduction of billions of dollars in charitable giving starting this year. Although the long-standing charitable deduction methodology was preserved, overall giving could be significantly hindered due to the new higher standard deduction reducing the number of tax payers who itemize on their … Continued
The “Tax Cuts and Jobs Act of 2017” (TCJA) was signed into law on December 22nd and, while it will take some time to fully absorb its many impactful provisions, some key areas for planning clearly exist in this New Year. Probably the most significant change for many private taxpayers is the substantial expansion of … Continued
As year-end approaches, it is time to review strategic planning opportunities with your trusted advisors. As we await the outcome of the tax reform bill, it is a good time to start the dialogue and prepare to act. With that in mind, here is a list of end-of-the-year financial tasks for your consideration. Tax-Loss Harvesting … Continued
It is not unusual here in Silicon Valley for employers to offer their employees the opportunity to acquire company stock as an investment alternative in their 401(k) plans. Employees may acquire equity shares using pre-tax dollars, or even better, at no cost when shares are granted as a matching contribution. But eventually, whether because of … Continued